Marathon Digital CEO Fred Thiel has predicted a significant future increase in Bitcoin prices, linking it to the rising institutional adoption of the cryptocurrency.
Why Bitcoin is Valuable
Fred Thiel pointed out that the total number of Bitcoins is limited, with a maximum of only 21 million BTC. He stated that the rarity of an asset increases its value, similar to how art pieces by artists like Banksy become more valuable after their death. "Don't tell me Bitcoin has no value. Bitcoin is valuable because people believe it is valuable. That is the only reason the dollar has value, because people believe it has value," Thiel said. Thiel also stated that Bitcoin is a perfect asset class and a form of "hard money." He suggested that countries and large corporations, such as Marathon Digital and MicroStrategy, would begin to hold Bitcoin in their reserves. "You will also see more and more financial institutions holding Bitcoin. And once the banks in the US open services for holding and using Bitcoin as collateral, the price of Bitcoin will skyrocket," he added.
Marathon Digital: Company Overview
Marathon Digital Holdings is a company focused on cryptocurrency mining, especially Bitcoin. Founded in 2010 as Marathon Patent Group, it initially focused on acquiring and monetizing patents. In 2021, the company changed its name to Marathon Digital Holdings to reflect its shift in business focus. The company, listed on NASDAQ under the ticker MARA, uses renewable energy sources for mining and is considered one of the largest mining companies in the world. Marathon Digital was originally founded in 2010 by Derrick J. McIntyre and Alan K. Carr. However, over time, the company's structure and leadership have changed, with Fred Thiel emerging as one of the key figures. Currently, Marathon Digital holds about 4.8% of the global Bitcoin Mining Pool distribution, second to the American company Foundry USA (14.8%) and Chinese mining pools (53.38%).
Marathon Digital's Strategy
In August 2024, Marathon Digital announced plans to raise $250 million through a private offering of senior convertible notes. This move aims to bolster its Bitcoin reserves and support various corporate objectives. At that time, the company held over 20,800 BTC valued at approximately $1.2 billion, making it one of the largest Bitcoin holders globally. During July 2024 alone, the company added over $124 million in Bitcoin to its reserves, highlighting its aggressive accumulation strategy.
Fred Thiel's prediction about the future Bitcoin price surge is based on the cryptocurrency's limited supply and its growing popularity among institutional investors. Marathon Digital remains one of the key companies in the industry, actively increasing its Bitcoin reserves and strengthening its market position.
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